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SBA Loans

What Is an SBA 7(a) Loan?

The Small Business Administration (SBA) 7(a) Loan Guarantee program is one of the most popular loan programs offered by the agency and is the basic SBA loan program.

When you apply for an SBA 7(a) loan, you work with a lender and the SBA participates by giving a guarantee and requiring additional application documents.

How Much Can You Get With an SBA 7(a) Loan?

Standard SBA 7(a) loans are for a maximum of $5 million, with an SBA loan guarantee of 85% for loans up to $150,000 and 75% for loans greater than $150,000. The terms of SBA 7(a) loans are 25 years for real estate and 10 years for equipment, working capital, or inventory.

 

The SBA sets a maximum interest rate, but you and your lender can negotiate within that limit. Interest rates are based on the prime rate, the size of the loan, and the maturity of the loan.

 

Eligibility Requirements for a 7(a) Loan

For your business to be eligible for a 7(a) loan:

 
  • You must be defined as a small business by the SBA (depending on your industry) to be eligible for the 7(a) loan program.
  • In addition, your business must be operating for profit within the U.S. or its territories.
  • You must have the resources to invest your assets in your business, and you must show that the loan is for a sound business purpose.
  • You must not be delinquent on any existing debt obligations to the U.S. government (such as student loans)
  • You must have used other financial resources before applying for this loan.
 

Most types of businesses are eligible, except for real estate investment firms and other speculative businesses, dealers in rain coins and stamps, lending companies, pyramid sales companies, companies that engage in illegal activities or gambling, and non-profit organizations.

The 7(a) loans may be used for such business purposes as purchasing land or buildings, equipment, machinery, and/or supplies; long-term or short-term working capital; refinancing; or the purchase of an existing business.

What We Do

At Rockfund Capital, we don’t conduct business with “borrowers.” We ensure we understand our clients’ goals, objectives, and obstacles.

With that understanding in place, we work collectively as true partners to help our clients achieve success.

Our solutions make more possible.

Loans range from $500,000 to $5 million, and are typically used for:

  • Commercial real estate acquisitions and/or improvements
  • Business acquisitions, expansions, and partner buy-outs
  • Machinery and equipment purchases
  • Franchise financing
  • Debt refinancing

Advantages to our lending solutions:

  • Increased cash flow to invest in and expand your business
  • Long repayment terms, reducing monthly payments
  • Low, flexible pre-payment penalties
  • Low down payment on commercial real estate acquisitions

Financing is available nationwide for most industries, including, but not limited to:

  • Industrial / Manufacturing
  • Office
  • Retail
  • Wholesale / Distribution
  • Export / International Trade
  • Medical/Professional
  • Gas stations / C-stores
  • Select franchise restaurant concepts

Get in touch with a Rockfund Capital Business Development Officer today to begin discussing your needs and objectives. We look forward to learning more about you, your business and your plans for the future.

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